Last week, CBS CEO Les Moonves was suing to stop Shari Redstone from trying to recombine CBS & Viacom. Today Redstone struck back. From the Hollywood Reporter...
Shari Redstone has made her next move in the legal showdown that puts the fate of the CBS and Viacom merger in uncharted territory.
The Redstone-controlled company National Amusements issued a statement Wednesday saying it "has delivered written consents to CBS to amend CBS’ Amended and Restated Bylaws, effective immediately, to safeguard against unlawful action by CBS and its special committee in derogation of their fiduciary obligations to shareholders."
"The amendment principally requires that certain board actions with respect to dividends and amendments of CBS’ bylaws be approved by a supermajority of the CBS Board of Directors and be subject to certain procedural requirements," the NAI statement continued.
In plain English, Redstone is attempting to block a plan by CBS to issue new voting shares to its investors in order to dilute the 80 percent voting control that she (and father Sumner Redstone) enjoy via their ownership of National Amusements, which owns a slew of special shares of both Viacom and CBS.
